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Energy trading makes fundamental contribution to the transformation of the energy system

RWE Supply & Trading (RWEST), one of the largest energy trading houses in Europe, plans to double business with third party customers in the medium to long term and expand its international trading business further. As an energy manager for the secure supply of electricity, the company sees itself taking a key role in the ongoing transformation of the energy system. The subsidiary of RWE AG announced its goals at a press talk in Frankfurt-on-Main on Monday.

RWEST is one of the three pillars of the RWE Group in its new structure - along with conventional electricity generation and the new subsidiary RWE International SE, which pools the renewables, grids and retail operations. The trading company expects an average contribution to earnings to amount to some €250 million per year.

An attractive business with growth potential

“Energy trading is a very attractive business for us with growth potential,” says Dr. Bernhard Günther, Chief Financial Officer of RWE AG and RWE International SE. “As a major profit driver, it is an important mainstay for RWE AG in its new structure - with ambitions to go further without the need for larger investments.”

RWEST also has expectations for significant growth in business with large corporate customers in Europe. The company offers a wide range of services from traditional energy supply contracts to comprehensive energy management solutions and complex risk management concepts.

“In times when the energy system is undergoing a transformation, energy management is also becoming increasingly complex for our customers,” says Dr. Markus Krebber, CEO of RWE Supply & Trading GmbH and designated Chief Financial Officer of RWE AG. “We have the necessary know-how and global presence to further expand our services for large corporate customers in Europe. In the medium to long term, we want to double the share of third party customer business.” RWEST currently generates around 10 per cent of its revenue from third party customers.

Bridge builder for a secure electricity supply

In times when the energy system is undergoing a transformation, the commercial management of RWE’s own power plants is also becoming increasingly challenging. In order to make the most accurate forecast for fluctuating supplies of wind and solar energy, and make optimal use of these flexible generation facilities, half a dozen meteorologists have been working at the trading company.

“Not only our power plants and our customers benefit from our expertise. In fact, we are contributing to the stabilisation of the entire energy market by balancing out the fluctuations in renewables. Therefore, our trading business provides an essential contribution to the transformation of the energy system in Germany,” Günther explains.

In the original trading business, RWEST is today present in nearly all of the major trading centres and employs around 1,300 people from over 40 different countries. The company’s business activities outside Europe are set to expand, particularly in Asia.

RWEST’s business portfolio also includes gas procurement and the Principal Investments division. The Principal Investments division deals with financial investments or commodity-related projects with energy companies that are to be resold profitably after several years.

Forward-looking Statements

This press release contains forward-looking statements regarding the future development of the RWE Group and its subsidiaries as well as economic and political developments. These statements are assessments that RWE has made based on information available to the company at the time this document was prepared. In the event that the underlying assumptions do not materialise or additional risks arise, actual performance can deviate from the performance expected at present. Therefore, RWE cannot assume responsibility for the accuracy of these statements.